Worcester City Council puts brewery move on track

Nick Kotsopoulos TELEGRAM & GAZETTE STAFF

Published Tuesday October 16, 2012 at 10:00 pm

Updated Tuesday October 16, 2012 at 10:54 pm

They may soon be making beer at Union Station. Wormtown Brewing Co., at 455B Park Ave., adjacent to Peppercorn’s Grille and Tavern, has been working with the Worcester Redevelopment Authority to relocate its beer manufacturing operations to the historic train station at Washington Square.

Timothy J. McGourthy, the city’s chief development officer, told the City Council the company is interested in occupying nearly 7,500 square feet of space on the first floor of Union Station, on the Harding Street side of the station where loading docks are located.

He said the company is most interested in that part of Union Station because of its high ceilings and access to the loading docks, which are considered ideal for its operations. The space extends from the building’s Harding Street entrance to its rotunda in the middle of the station.

He said Wormtown Brewing initially intends to have its manufacturing operation at Union Station. He said there are no plans to have a restaurant component or something more with it for at least the first couple of years; however, the owner’s ultimate vision is to have a restaurant or tasting bar there.

To facilitate the relocation, the City Council last night gave initial approval to a $400,000 loan order to fund the purchase of equipment and fitting out the tenant space.

Mr. McGourthy said the financing of the tenant fit-out and equipment will be incorporated as part of the lease agreement. He said negotiations are ongoing with Wormtown Brewing about the lease.

He emphasized that none of the money from the loan order will be spent until the lease is signed.

Mr. McGourthy added that if the company does not meet the terms of the lease agreement, it would be required to pay back the loan.

Wormtown Brewing, which opened in March 2010, operates in a 1,200-square-foot site in what was once an ice cream parlor next to Peppercorn’s. Because it produces about 5,000 kegs of beer a year, it is considered a microbrewery — breweries that produce less than 30,000 kegs a year.

Mr. McGourthy said several other sites throughout the city were looked at for relocating the brewing operations, including the vacant ground-level retail spaces at the Union Station garage. But he said the Oliveri family, owner of Wormtown Brewing, felt the space in Union Station would suit its needs best.

City councilors embraced the proposal, saying it has exciting potential.

Councilor-at-Large Frederick C. Rushton, chairman of the council’s Economic Development Committee, praised the plans, calling it a marriage of a growing local business with the historic nature of Union Station.

District 2 Councilor Philip P. Palmieri said the brewery could help enormously in drawing more people to Union Station if it ever decides to add a restaurant or tasting bar component with it.

He did wonder, however, whether that might pose problems with existing restaurants in Union Station.

District 3 Councilor George J. Russell said it was the first he had heard of the plans and he questioned whether it was wise to put a manufacturing operation in the train station.

While he supported advertising the loan order — the first step in a two-step process — he said he would like to see the proposal discussed in greater detail before the council’s Economic Development Committee.